Which type of trade barrier is a tax on imported goods?

• A. Subsidy
• B. Export ban
• C. Tariff
• D. Quota

Answer: (C)

Verified step by step guidance

1. Understand the definition of a trade barrier: it is any government-imposed restriction on international trade that limits the free flow of goods and services between countries.
2. Identify the types of trade barriers: common examples include tariffs, quotas, subsidies, and export bans.
3. Recall that a tariff is specifically a tax imposed on imported goods, which raises their price and makes them less competitive compared to domestic products.
4. Recognize that a subsidy is a financial aid given to domestic producers to lower their costs, not a tax on imports.
5. Note that an export ban prohibits the export of certain goods, and a quota limits the quantity of goods that can be imported, neither of which is a tax.